Forecasting resource capacity using a time driven ABC system Refer to the time driven ABC analysis of forecasting resource capacity for the Madison Dairy ice cream plant example on pages 181–184 of this chapter. Suppose that all the information is the same except for the following:
|
|
VANILLA |
CHOCOLATE |
STRAWBERRY |
MOCHA ALMOND |
TOTAL |
|
Sales volume (gallons) |
15,500 |
13,000 |
1,600 |
1,200 |
31,300 |
|
# production runs |
18 |
16 |
4 |
3 |
41 |
Required
(a) Assuming that only full time employees can be hired, determine the number of production employees required to meet this production plan. Also, determine the number of machines required for this production plan.
(b) Prepare a pro forma monthly product line income statement
(c) What are the company’s gross profit and the ratio of gross profit to sales after incorporating the cost of unused capacity?